“These companies illegally charge fees for services that student loan borrowers can obtain themselves through government programs at no cost,” Madigan said. “My office will be aggressive in cracking down on scam operations that prey on student loan borrowers for profit.”

The two companies Madigan targeted first are Chicago-based First American Tax Defense LLC and Texas-based Broadeword Student Advantage LLC. Madigan claims the companies are not licensed, and they illegally charged hundreds of dollars in upfront fees to reduce or eliminate student loan debt, including offers to enroll in a phony “Obama forgiveness program.”

Madigan said the companies advertised heavily in Illinois, and that current and former students should never pay upfront for help with student loan debt relief.